Foreign media September 26 news, Argentina is already the world's fastest growing lithium producer. But if China wants to outperform some regional rivals, it needs a new government to ensure the business environment is ripe for developers, according to the local unit of China's Zijin Mining Group Co.
Tomas de Pablos Souza, president of Liex SA, said barriers to lithium development in neighboring Chile and Bolivia, such as tax increases and stricter environmental standards, have opened the door for Argentina. To seize the moment, Argentina's next government, which will take office at the end of the year, must avoid the unpredictable state interventionism that has stifled growth in several industries, he said.
"We are facing a unique opportunity," he said at a Bloomberg event in Buenos Aires. "We don't know if this train will ever come again, so we need to hang on to it and get on it - it's a matter of waiting a few months and seeing what the policy is waiting for us."
Argentina is currently the world's fourth-largest lithium producer. Some experts say the country could push itself into second place behind Australia within a few years if it can tap into its considerable reserves. At the same time, demand for lithium is soaring because the metal is a key ingredient in electric car batteries.
Opposition candidates Javier Millay and Patricia Bullrich are contesting the Oct. 22 presidential election, both promising to deregulate the economy.
De Pablos Souza implored Milei, Bullrich and Sergio Massa to create clear rules and legal protections for companies and to approve so-called electric vehicle legislation in Congress to encourage lithium investment. His call for an improved business climate echoes recent public comments by shale oil drillers such as Chevron Corp. and crop traders.
Zijin's Liex is developing the Tresque Bradas mine on the Argentine side of South America's lithium Triangle. A project in which Ganfeng Lithium Group Co. has a majority stake became the third lithium project in Argentina to come on stream earlier this year. Zijin also plans to build a cathode plant in Argentina.
